Investa Commercial Property Fund
(‘ICPF’ or the ‘Fund’) today announced it has successfully raised almost $800 million of new equity in 2020 after initially targeting to raise $500 million, with the most recent $200 million investment by an offshore pension fund finalised this week.
The investments demonstrate ongoing demand for exposure to high quality, Australian office assets, despite current market uncertainty.
The Fund owns some of Australia’s highest profile assets, including Deutsche Bank Place, 126 Phillip Street, Sydney, 60 Martin Place, Sydney and 120 Collins Street, Melbourne.
Commenting on the raising, Brendan Looby, Fund Manager, ICPF said: “The ability to gain exposure to a portfolio of assets of this calibre has been a major factor in attracting this new capital and demonstrates the ongoing appeal of the Australian office sector.
Asset values have remained resilient during the pandemic, demonstrating the benefits of investing into a high quality, CBD focused core office fund.
The Fund’s high quality asset base, coupled with its pipeline of quality development assets provides the opportunity to continue to deliver strong risk-adjusted returns as we come out of the pandemic,” said Mr Looby.
ICPF has delivered strong returns to its investors and continues to be the top performing wholesale office fund on the MSCI/Mercer Index over 3, 5 and 7 year horizons.
Penny Ransom, Head of Investment Management, Investa said: “While there is caution in the market, the investment case for Australian prime office remains attractive.
The Australian economy has performed better than expected during the pandemic and is in a stronger position than most other western economies. Capital continues to be allocated to the sector and major transactions are occurring, demonstrating liquidity in the sector.
Tenants continue to tell us they’re looking forward to their workforce returning to the office in the coming months, as there is no better place to collaborate, innovate and build company culture, than in a workplace that is tailored to your operation and your people,” said Ms Ransom.
The Fund’s portfolio of 15 office assets is valued at ~$6 billion and is 96% occupied, with a weighted average lease expiry of ~5 years and gearing of ~12.5%.
Keep up to date with all our updates on social media
About Investa Commercial Property Fund (ICPF)
ICPF is a core prime office fund for institutional investors which aims to optimise total returns with a low-risk investment approach, concentrating on Premium-grade office assets in the major Australian CBD markets. With a portfolio of ~$6 billion, ICPF is well-diversified by market, tenant and industry type, with an active capital management approach and a conservative gearing profile. The fund’s portfolio of 15 assets includes interests in some of Australia’s leading office buildings, including 60 Martin Place, Sydney, Deutsche Bank Place, 126 Phillip Street, Sydney, 420 George Street, Sydney and 120 Collins Street, Melbourne.
Investa is a commercial real estate management and development service provider in the Australian office sector. With more than ~$12 billion in assets under management, we maximise the value of Australian workplaces for our tenants, investors and the community through our office management expertise and by consistently delivering a superior customer experience, while remaining an industry leader in sustainable building management and responsible property investment.